Budapest’s Eighth District is planning to levy a local property tax on homes which are used for short-term accommodation services such as Airbnb, according to a draft decree posted on the district’s official website.

Real estate prices continued to go up over the past twelve months in Budapest, where the biggest increase was reported in the residential area of Hűvösvölgy on the Buda side, business daily Világgazdaság said.

Hungarian residential property prices rose by an average of 5.4% in nominal terms in 2018 Q1 compared to the previous quarter. This is a significant increase compared with the rate of price growth in the final quarter of 2017, the National Bank of Hungary (MNB) reported.

Takarék Mortgage Bank, previously known as FHB Mortgage Bank, expects home prices to continue rising this year, but the pace should decelerate. Meanwhile, the government does not plan to extend the preferential 5% VAT rate for new homes.

This year so far 1,300 properties have been sold at below HUF 15 million through the network of residential real estate trading and advisory firm Otthon Centrum (OC). Very few of these were sold in Budapest, the majority being located outside the capital city.

Hungary’s home market has not overheated yet for the country as a whole, but prices in Budapest “slightly exceed” the level justified by economic fundamentals, the National Bank of Hungary said in a biannual report.

As in 2016, Districts 1 and 5 of Budapest remain the most desirable to live in, according to the latest survey from real estate agency Otthon Centrum. Of major cities outside the capital, the survey finds that Eger, Veszprém and Tata lead the way.

Budapest’s Eighth District is planning to levy a local property tax on homes which are used for short-term accommodation services such as Airbnb, according to a draft decree posted on the district’s official website.

Real estate prices continued to go up over the past twelve months in Budapest, where the biggest increase was reported in the residential area of Hűvösvölgy on the Buda side, business daily Világgazdaság said.

Hungarian residential property prices rose by an average of 5.4% in nominal terms in 2018 Q1 compared to the previous quarter. This is a significant increase compared with the rate of price growth in the final quarter of 2017, the National Bank of Hungary (MNB) reported.

Takarék Mortgage Bank, previously known as FHB Mortgage Bank, expects home prices to continue rising this year, but the pace should decelerate. Meanwhile, the government does not plan to extend the preferential 5% VAT rate for new homes.

This year so far 1,300 properties have been sold at below HUF 15 million through the network of residential real estate trading and advisory firm Otthon Centrum (OC). Very few of these were sold in Budapest, the majority being located outside the capital city.

Hungary’s home market has not overheated yet for the country as a whole, but prices in Budapest “slightly exceed” the level justified by economic fundamentals, the National Bank of Hungary said in a biannual report.

As in 2016, Districts 1 and 5 of Budapest remain the most desirable to live in, according to the latest survey from real estate agency Otthon Centrum. Of major cities outside the capital, the survey finds that Eger, Veszprém and Tata lead the way.

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